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Elon Musk's xAI just raised $6 billion in funding. Who's behind it?

May 28, 2024 - qz.com
Elon Musk's AI company, xAI, has raised $6 billion in a Series B funding round from investors including Andreessen Horowitz, Sequoia Capital, and Saudi Arabian investor Prince Alwaleed bin Talal. This has increased the company's valuation to $24 billion, higher than the expected $18 billion. The company, which has developed its own chatbot, Grok, is staffed by AI talent from DeepMind, OpenAI, Google Research, Microsoft Research, and other large language model and machine learning researchers.

In other news, Musk is suing his former company, OpenAI, and its CEO, Sam Altman, alleging that their multi-billion dollar partnership with Microsoft breaches its founding commitment to prioritize benefits to humanity over profit. Musk has requested that OpenAI's research and technology be made public and that Altman forfeit money from the alleged illegal practices.

Key takeaways:

  • Elon Musk's AI company, xAI, has raised $6 billion in a Series B funding round, pushing its valuation to $24 billion. Major investors include Andreessen Horowitz, Sequoia Capital, and Saudi Arabian investor Prince Alwaleed bin Talal.
  • xAI has developed its own chatbot, Grok, and plans to open-source it. The company's staff includes AI talent from DeepMind, OpenAI, Google Research, and Microsoft Research.
  • Musk, who co-founded OpenAI, is suing the company and its CEO, Sam Altman, alleging that their partnership with Microsoft betrays the company's founding commitment to prioritize benefits to humanity over profit.
  • Musk's lawsuit requests that OpenAI be ordered to open its research and technology to the public and that Altman forfeit money from the alleged illegal practices.
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